All Forum Posts by: Rene G.

As a self-managing landlord, I tested this with a few of my properties. To earn extra income, e.g. an additional $10 per month for alarm access/service. I got with my lawyer and we added an alarm usage/liability section, where the tenants could opt-in and pay to use the alarm. Only one tenant signed up and I got a whopping $120 for a one-year lease term. It turned out, for me, not to be worth it.

It was one of the lessons that helped me as a landlord learn what I really wanted most... Not money... Real Freedom! I do not want extra complexity in my rental operation. I formed my own formula, I call it the ABCs of self-service management automate, balance, control). I teach this kinda stuff to landlords in a free private skool.com community (after 10 years of long-distance management of my own rentals from Iraq, I've learned the importance of good systems. Think ATMs...automatic teller management. Lol).

Anyways, that's my 2 cents. I do commend you for thinking outside the box, asking for input, and trying to do your best to adapt. Love it! Don't let me discourage you though. At the end of the day, I say do your own testing, like an experiment. That's what's helped me learn how to optimize my rental business for real freedom and not money.

Best of luck!

@Hannah,

If that's your primary residence, where are you going to stay? Can you just stay there a bit longer, save for another down payment, then purchase another primary residence (using a landlord perspective, i.e. house hack the next house until you turn it into a rental). You can do that again and again. 

I say, "Never sell!"

I'ver heard hundreds of times, people saying they wish the never sold. I never hear anyone holding long-term complaining they wish they sold. Imagine, if one day you hold long enough and you have fully paid off SFRs!?

Everyone wants to talk about taking on a bunch of debt and adding a bunch of doors. I think less is more. If you're looking for "Real Freedom" as a landlord, what's better... Having a lot of complexity, e.g. 20 units all cashflowing $100 for a total of $2k per month...OR... 2 fully paid off SFRs cashflowing $4k per month?

Oh, just remember, if you're current home is your primary residence, and if you filed Homestead with your local property appraiser, then when you convert it into a rental your property taxes will go up. Meaning when you run the number, consider you're escrow/mortgage being higher. 

Feel free to direct message me if you have any questions.

Rene G

@Bruce N.

Haha! Landlords have a mental block when it comes to spending money. They focus so much on how much they are spending and how much they could save if they did it...but they never consider the "real freedom" aspect. You are not really free if you are tied to your business. 

The answer is not to hire a property manager either, because you're just adding a middleman. You can set your own systems in place and as a self-managing landlord are more flexible and can think outside the box. Property managers have their own "my-side" bias. Not only will they default to what is in their best interest. They will also be confined by company policy and take the path of least resistance. Oftentimes, what's in the best interest of the property manager is a conflict of interest of the landlord. Not to mention, no one will run your business better than you!

You just have to learn to take a hands-off approach. The hard part for you is that you are local. For me, I had no choice; I deploy a lot to the Middle East. I was forced to build systems that took me out of the question because I was on the other side of the world in a backward timezone with crappy internet. If I figured it out you can too!

I made a video about this, why landlords fail: https://youtu.be/2BCTdETO2TA

If you watch it, let me know what you think.

Rene G

Jason,

If you have less than 10 rentals, you can easily do it yourself. I've been a landlord for over 10 years and spent most of my time deployed to the Middle East. If I can manage my rentals on the other side of the world, in a backward timezone, with crappy internet, you can definitely do it with your W2 job.

It's only getting easier with technology and if you build in systems that give you real freedom. Note, this will not work if you're a cheapskate landlord that's not willing to invest into running a business. I call it the plain vanilla business advantage. For example, it won't work if you try to run a mom-and-pop do-everything yourself operation. You have to have a website, FAQs, eforms, surveys, systems, etc...stuff that gives you leverage and buys you time with efficiencies. I have so much to say about this, but not enough time... 

Just understand that everyone is giving advice with their own unique "my-side" bias. Plus, people are always selling something, if not themself, their image, their referrals, etc.  

Anyways, that's my 2cents. You will do what's best for you, just be solution-oriented and use system thinking. Use feedback to optimize your process to produce better outputs—keeping the most important priorities in mind.

Rene G

Hey Viktor,

Are you just getting started? 

I made a video on this... I finished a deep dive into landlord mindsets. For example:

Mindset + Behavior = Result

How long do you think you'll be a landlord? If you're looking for a quick fix, and just to get the job done, then you can get away with a generic lease for the time being but your results will be subpar. However, if you're in this for the long run, then you want to optimize your lease and use it as a way to leverage systems that make your life easier as a landlord (and you want solid FAQs). 

In my opinion, the lease is the most important document you have that directly affects results. I know when I first started out, I asked a realtor for their lease. It was a catchall lease with no systems built specifically for a landlord managing their own property. Over time, after 12 years of managing my own rentals from Iraq, I had to figure out ways to help my tenants without me being directly involved. I eventually learned unique efficiencies that really helped me out as a landlord.

You see, a property manager cannot be as creative as a self-managing landlord because they are constrained by company policy and what the owners want. Similar to realtors. Not to mention, everyone has their own "my-side" bias and people are motivated by incentives. There is no one that will have a greater incentive to run your business better than you! For me, I'm free to think outside the box and implement my own processes that give me the result I want — "real freedom."

Anyways, that's how I see it.

If you're interested in talking further, feel free to private message me. 

Rene G

What are your intentions hiring an inspector? Can you not afford repairs, so you want to inspect as an way to ensure the tenant won't damaging your property? I ask because you could probably handle that with a quick video chat inspection. 

If you're not using a PM, are you local? Just wondering if you are willing to do the inspection. Do you really want to spend your time doing this? I think if I knew your intentions, there might be an alternative to over inspecting. That give you the same results.

@Chris Long

My mind instantly goes into problem-solving mode. How do you prevent this from happening again (regardless of what the City does/does not do)? In my opinion, the most important thing to do is find a long-term solution. Is there any way you can fix this on your own? 

Here in Florida water mitigation is a science. Can you put in a modified sump pump french drain system?

Oh, here, check out "Apple Drains" on YouTube.

Rene G

Why did you furnished the unit in the first place? 

What makes you think it's ideal for corporate housing, besides it being furnished? 

I'm curious why not keep doing what you've been doing. You know. If it ain't broke don't fix it.

Ok. Well everyone wants to talk about low or no money down. Or finding the perfect deal. I say if you put enough down you can always make the numbers work. So, in my opinion, it's more important to focus on location and be prepared for the long run (e.g. anticipate repairs, have a solid emergency fund, build self-service management, etc), than it is to find some perfect deal that may never come. Or worse, you end up with some weird property with good numbers but it's in an area no one wants to live. There is so much more I could say. I work with landlords that never plan to sellout. There's a big shift in your mindset when you plan to be a landlord forever, vs a property investor where you know one day you're going to sell everything and exit.

@Chris Wilson,

It sounds like you're stuck. I'm guessing here. idk

So, you don't have any rentals yet? How long are you committed to real estate investing?

Tell me, what's worse for you? 

If you wait to get rentals, but a recession never comes?

or

If you don't wait and get a property, but a recession does come? 

I don't know your intentions so it's hard for me to add any value here. I looked at your profile, but you don't have any details there either. 

Like, what do you want? Do you want single-family rentals/buy-and-hold? Flipping? Are you going for multifamily or short-term rentals? 

Rene G